This article yesterday reveals unsurprising behavior. Municipal Bids Rigged by Financial Institutions
The questions for discussion is these, what kind of culture and management practices encourage bad behavior? Are these isolated incidents or do such behaviors permeate institutions? How would we know? It seems that individual bankers will be prosecuted for these activities. How will the institutions be prosecuted? In banking there is generally compliance training involving the Patriot Act and Money Laundering. Bankers are taught that there must not be “Willful Blindness” to suspicious activity. Should senior bank managers be held to the “Willful Blindness” test for the way they manage?
I’m sure the argument is being made that these individuals are weeds. They do not reflect the values of the institution. Where do weeds grow?
“Weedy plants generally share similar adaptations that give them advantages and allow them to proliferate in disturbed environments whose soil or natural vegetative cover has been damaged.”
Managers create disturbed environments that allow weeds to proliferate.